Dubai will use the rest of the money to pay “trade creditors and contractors as well as meet interest expenses and company working capital through April 30, 2010 — conditioned on the company being successful in negotiating a standstill as previously announced” on Nov. 25, the Dubai government said in an e-mailed statement today.

Dubai World said Dec. 1 it’s seeking to restructure $26 billion of debt, less than half the $59 billion of liabilities it had at the end of 2008. Nakheel, which is building palm tree- shaped islands off the emirate’s coast, posted a first-half loss of 13.4 billion dirhams ($3.65 billion) as revenue fell and it wrote down the value of land and property.

“It comes as a relief for the market, underpinning hopes that the implicit government support for Dubai corporate issuance is intact,” said Jason Watts, head of credit trading at National Australia Bank Ltd. in Sydney. “Whilst we are not out of the woods yet, it is definitely a step in the right direction.”

Bloomberg

“If they are running the airconditioning during the month, they are having a bill of Dh3000 to Dh4000 a month,”

Ashraf al Agamawy, the manager of the project, told The National. In addition to AC, a management fee of Dh12 per square foot is charged, as well as a Dh12,000 fee for telecommunications. For a villa, the annual electricity bill can reach Dh48,000, and all together the service bills tops out at Dh100,000. According to houseowners, people are afraid to use their homes. Saed, an Emirati said:

“When I come to my villa for the weekend from Abu Dhabi I am scared of switching any lights on. I ask my children to switch off the lights and AC in other rooms, and watch the TV reasonably.”

Another houseowner, who wanted to stay anonymous because of his job in the RAK Government, told The National the bill can explode in no time:

“One month I did not go there at all and I was charged over Dh1,000 because of the power used to run the fridge and swimming pool,” he said. “In another month I went to the villa for four days and the bill that time came to about Dh4,000. I just refuse to pay that.”

The Cove was launched in 2005 by one of Egypt’s larges developer, Orascom Hotels and Development. The luxury-development comprises 78 villas and 188 apartments, 75 of which are timeshare-apartments in an agreement with The Cove Rotana Resort, also located on the premises. The Federal Electricity and Water Authority has recently approved a Dh172m upgrade to provide new power transmission stations in the Northern Emirates.

The National

Mohammed al-Mubarak, chief commercial officer of Aldar Properties, said on a press conference on Thursday the project will “offer the super rich the very best in housing”.

Ferrari World Abu Dhabi is estimated to be completed in 2010 and will be owned 100 % by Aldar while Ferrari receives royalties for lending out its brand. The theme park is located on Yas Island in close proximity to the Yas Marina Circuit which will host its first Formula 1-race this weekend.

Maktoob Business

Dubai World has already cut its global workforce with more than 15% down to 70,000 workers and its UAE workforce with more than 25%, the company said in an emailed statement today

In addition to offering equity in units such as developer Nakheel PJSC, Dubai World may also seek cash from the Dubai government, which could borrow from the United Arab Emirates’ central bank in Abu Dhabi, the people said, speaking anonymously because the talks are private.

Granting equity in a unit such as Nakheel, the real-estate developer with $3.52 billion of debt due in December, may help Dubai World appease creditors and avoid a fire sale or bankruptcy of hotels, retailers and other assets the investment group amassed this decade, according to the people.

“We can consider selling part of our assets under the investment arm conditional that it has the right value, but we will definitely not embark upon any fire sale,”

Jamal Majid Bin Thaniah, Dubai World’s chief executive officer, said in an interview in Dubai today. An initial public offering for Nakheel “is an option we might consider depending on the opportunity.”

Bloomberg

The museum will cost Dhs400m in addition to a franchise fee of $1bn (Dhs3.67bn) for using the Louvre brand name and for hundreds of artworks loaned from the Paris museum for periods of between six months and two years.

Designed by French architect Jean Nouvel, the civic area will span 260,000 square feet and comprise pavilions, plazas, canals and alleyways. (About 65,000 square feet will be dedicated to exhibitions.) A dome 590 feet in diameter will hover over much of the complex. Completion is set for 2012 or 2013.

The Louvre Abu Dhabi is a joint effort between the governments of France and Abu Dhabi. It will feature artworks loaned from several top French museums, including the Louvre, the Musée d’Orsay, le Centre Pompidou, the Musée de Quai Branly and the Musée Guimet. In addition, the center will exhibit work from its own developing collection.

Billed as “the first universal museum,” the Louvre Abu Dhabi will also feature archaeological artifacts and art from all cultures.

Gallery

The National/LA Times

The plots are in several development projects such as Raha Beach, which is under development by Aldar Properties, the Rawdhat Abu Dhabi project by Reem Developers, and the Saraya project by Sorouh Real Estate.

Aabar said in a statement that the land would be used for development projects such as hotels, and residential and commercial buildings.

In February, the company signed an agreement with Tamouh Investments to acquire six plots on Reem Island, at Dh1,285 a square foot, for a total of Dh5bn. Development plans for Reem Island include four commercial tower buildings and eight mixed residential-commercial tower buildings, with a net floor area of 361,397 square metres. The 12 towers are due for completion in 2012.

Aabar’s biggest acquisition to date was the 9.1 per cent stake in Daimler, the car maker, for $2.7bn in March.

The company also completed the purchase of the Swiss-based private banking division of American International Group, renamed Falcon Private Banking.

The company agreed in December to pay 307m Swiss francs (Dh1.02bn) and assume 100m francs in debt to take over the bank.

Aabar reported that its first-quarter net profit increased to Dh177.3m, from Dh40.1m for the same period a year ago, after its state-owned parent, the International Petroleum Investment Company (IPIC), converted a bond issue into shares.

IPIC uses Aabar as its investment vehicle outside the oil industry.

The National

The new development will provide around 5,000 homes for middle-income UAE families, as part of the Abu Dhabi Government’s housing initiative. It will comprise of five villages, each with its own village centre, schools, and mosques. The town centre will be the focal point of the entire development and will contain civic buildings, a 65,000 square metre retail mall, a hospital, 50,000 square metres of commercial office space, a hotel and a sports and leisure complex..

Residents will have excellent access to education, with 15 schools catering for children of all ages from early learning to high school.

Located to the east of Abu Dhabi International Airport and the Abu Dhabi-Dubai highway, Al Falah has been designed as a practical and sustainable community within a development area of approximately 12 million square metres. Moving away from the traditional “grid” approach for developments, Al Falah’s innovative design encourages community gathering with a number of open parks that connect the residential, commercial and leisure elements.

Speaking at the launch of Al Falah, Ahmed Ali Al Sayegh, Chairman of Aldar Properties commented,

“Aldar is proud to be a major contributor to one of the main pillars of Plan Abu Dhabi 2030. Increasing housing availability for middle income families is one of many ways through which Aldar is living up to its mission of building sustainable communities to cater to the growth needs of the Emirate of Abu Dhabi.

Al Falah is a residential development that creates a strong sense of community, not only by its design but also through the community centres and amenities that will be available for the residents.”

Zawya

The report also reveals that, increasingly, investors are returning to invest in fundamentals with more weight being attached to regulatory issues and market risks than six months ago. Further, according to investors surveyed, markets will begin to recover in 12-18 months a view consistent with Jones Lang LaSalle’s MENA House View that 2010, will be the ‘Vintage’ or optimal year to have invested in.

Jones Lang LaSalle’s Investor Sentiment Survey, incorporates the views of over 200 developers, sovereign wealth funds and high net worth investors, and provides an ideal benchmark for the state of regional real estate markets. The detailed report of this survey is available on www.joneslanglsalle-mena.com

Ian Ohan, Head of MENA Investment Transactions at Jones Lang LaSalle, commented:

“Sentiment, be it positive or negative, drives markets. Since we last undertook our Investor Sentiment Survey in September 2009 in the aftermath of the Lehman Brothers collapse, sentiment has, without doubt, fuelled a dramatic change in the health of the MENA real estate sector. This is, therefore, a vital piece of research with contributions from the many of the region’s leading investors.

We, as one of the world’s leading real estate advisory organisations see many positives in the report. That investors are returning to investment fundamentals such as focussing on yield is a welcome finding as is the suggestion that there is, at last, an end in sight to the current turmoil. With Abu Dhabi and Saudi Arabia suggested as the hot spots for investors in the coming years, the MENA region looks set to grow in significance even further.As the signposts of recovery begin to emerge globally and regionally, experienced investors that understand the significant lead time to properly review and complete transactions are keen to not miss out on these value investment opportunities and are already pursuing deals.”

Andrew Charlesworth, Head of Corporate Finance Advisory Jones Lang LaSalle MENA, commented “the rebuilding of investor confidence is critical to institutional and fund based real estate investment. We are beginning to see the return of investor interest in discretionary funds that provide sound investment strategies, professional and credible management and proprietary deal flow”.

Key findings of the report

Middle East was the last region to experience the global downturn

• Capital values and rentals in the Middle East only started to decline in the final quarter of 2008 whilst other markets in the world had already been in decline for some time.
• Middle Eastreal estate markets have reacted relatively quickly over the past 6 months, with prices adjusting to the new market realities.
• Governments across the Middle East region have been swift to react, compared to their counterparts in more mature economies.
• Concerted efforts are being made to stabilise the regional financial and real estate markets after the initial damage assessment.

Middle Eastern real estate markets continue to outperform globally

• Investors view that the Middle East will outperform real estate markets in other regions over the next two years. 36% of respondents consider that the Middle East will have the world’s best performing markets over the next 12-24 months.
• Investor’s opinions on regional markets confirm view that there is a shifting focus of sovereign wealth funds and major regional investors into their local markets.
• Asia Pacific, North America and Western Europe seen as showing great potential, with London top of the list of those looking internationally.

Abu Dhabi, Saudi Arabia and Qatar seen as best markets within MENA

• Abu Dhabi is seen as the market likely to perform the best over the next 12-24 months. A balanced growth story to date, vast oil wealth and a relative undersupply of housing and other asset classes makes the emirate the most attractive investment environment of all the major markets in the region.
• Saudi Arabia was considered by a quarter of respondents as being the strongest performing market in the next one to two years. Jeddah and Riyadh offer the most potential according to the survey with the new economic cities starting to hit the market towards the end of the year. Vast under-supply of housing, notably in the middle income sector will continue to drive demand in the largest of the Gulf economies
• Qatar’s potential was also noted by respondents with almost twice as many as last year suggesting it would outperform other markets. Strong GDP forecasts and vast per capita wealth make Qatar the most protected from a protracted global downturn. Significant future supply may however temper real estate performance in the new term.

Downturn likely to continue in 2009, stage will be set for recovery set in 2010.

• All MENA markets are currently in the downturn stage of their cycle, with Saudi Arabia, least affected, according to respondents.
• Dubai will be the market hardest hit and is, thus, the furthest market from recovery. Dubai has been hit by a combination of the international downturn as well as a significant level of new supply coming on to the market. With significant adjustments in capital and rental values already in place, during the next 12 to 24 months, Dubai may prove to be one of the most lucrative real estate investment opportunities in the region. Other markets not developing at this pace and able to learn from the Dubai model are thus better protected.
• Nevertheless, there is a relatively narrow band of sentiment of the likely recovery time for markets within MENA. Half of those surveyed believe KSA will start its recovery within 12 months time.
• Liquidity will return to the market in the next 12 months according to 36% of respondents, with a similar number suggesting that this will happen in the next 12-18 months. This supports the view of a broad recovery in 2011.

Falling prices create greatest opportunity

• 2009 will see a further erosion of values in all markets least in KSA, with Dubai the worst hit.
• This price adjustment is expected to aid Dubai considerably as investors are attracted back at fairer values and with greater yields. Early signs of such activity is already visible
• Yield expectations have increased everywhere with investors expecting yields greater circ 11%, higher than the ‘9%’ figure revealed in last year’s survey. This yield shift represents a decrease in expected capital values for income assets of around 20% by respondents and 40% from peak actual traded values, consistent with London and other major centres that entered the downturn at least 12 months prior to MENA.

Cityscape Intelligence

Murray & Roberts had a 33 per cent share of the construction contract, worth a total of $1.6bn (Dh5.87bn), with Al Habtoor Engineering and Al Rahji Contracting being involved in the remaining 67 per cent. The other two companies have not made any official statement on the matter.

According to The National, sources close to Tameer said they were planning to cancel the construction contracts with Al Habtoor Engineering, Murray & Roberts and Al Rajhi Contracting. The source also told the company was considering renegotiation of the contracts with the contractors already involved.

Moving ahead

“Tameer is reviewing the construction programmes and associated costs for its iconic Tameer Towers project on Al Reem Island,”

a company official said.

“Tameer confirms that the Tameer Towers project is moving ahead. The enabling works are complete. Residential sub-structure works will commence upon completion of this assessment.”

Lower construction costs

Prices on building materials have declined and property developers have been renegotiating construction contracts to lower the total construction costs. Some developers have made the investors benefit from this by lowering the prices on their properties, even for contracts already signed.

The National